Stock market today: Dow sinks, Nasdaq flips positive as Trump tariffs take effect, trade war escalates

Published On Mar 4, 2025, 2:45 PM

U.S. stocks have reversed their post-election gains significantly, with tariffs imposed by President Trump on Canada, Mexico, and China causing market anxiety. Key indexes saw declines: the Dow Jones Industrial Average fell by about 0.7%, the S&P 500 by 0.3%, and the Nasdaq Composite managed a slight increase of 0.6%. Concerns about a potential trade war and the impact of these tariffs on the economy are driving the market sell-off. Major companies like Target and Best Buy are warning of increased costs and consumer caution due to the tariffs. Additionally, the financial sector is reeling from the tariff impacts, leading to widespread declines across all market sectors. The Treasury yields are also falling, reflecting investor caution about future economic growth amid these new tariffs.

Stock Forecasts

TGT

Negative

With the implementation of these tariffs and a generally negative market sentiment surrounding their impact, the outlook for many affected sectors, especially consumer discretionary and industrials, appears bleak as increased operational costs and reduced profitability loom. Investors should brace for further declines in the short term with potential corrections in stock prices originating from companies heavily impacted by these tariffs.

OKTA

Positive

Despite the fallout from tariffs, the technology sector is showing resilience. Companies that leverage advancements in AI and cybersecurity might still see gains. Okta's solid quarterly results represent a positive trend in tech, indicating potential for further growth in specific tech stocks even amid broader market declines.

Related News

The heads of major retail companies are warning that their profits could be impacted by tariffs and that prices could rise, some as soon as this week.

TGT
BBY

President Donald Trump's 25% tariffs on imports from Canada and Mexico took effect Tuesday. But actually collecting them is proving complicated.

Investors weighed Canada and China's response to President Donald Trump's delivery of new tariffs

XLF
OKTA